Nationwide Layoff Watch: Brown Rudnick Takes A Big Dig At Attorneys
The Boston-based law firm Brown Rudnick is the latest to sacrifice associates to the global economic crisis. Yesterday they parted ways with 20 attorneys, 3 paralegals, and 20 other staffers.
But the anticipation might have been worse than the hammer. Brown Rudnick told associates they were laying people off before anybody was actually laid off. This firm-wide email went out yesterday:
I regret to inform you that today we are having a layoff. Layoff notifications have begun this morning and will continue until approximately 4:00 PM ET today. This action will affect just under 10% of our attorneys, paralegals and staff….Out of respect for those who are being laid off, we are unable to share more information with you at this time, but we will answer your questions when the notification process is complete. Please refrain from approaching members of the Management Committee, Managing Directors or Administrative Directors, prior to 4:00 PM ET, with questions about the layoff, as they, too, need to honor the privacy of our colleagues.
Everyone who is impacted by today’s action will be receiving severance and outplacement assistance. No other layoffs are planned after today.
The Firm remains strong. Today’s action is intended to better align our staffing with current work levels at the Firm and to position the Firm to be successful in this challenging economic environment.
… [W]e will be holding two meetings in the Boston Event Center later today with video connection to Hartford, New York, Providence and Washington. I encourage you to attend these group meetings. I will answer your questions at that time.
That’s a tough day. Waiting by your phone to learn if you still have a job.
After the jump, it was all over by 4:00 p.m.
After all the recently unemployed Brown Rudnick personnel were informed of their fate, this email was sent around the firm:
Today, we have laid off 20 lawyers, 3 paralegals, and 20 members of our staff. Among those affected by todayʼs action are 2 associates and 1 staff person in London, who, in accordance with UK law, were notified that their positions have been provisionally selected for being made redundant.We have reached out to everyone impacted by today’s decision. All will be receiving severance and outplacement assistance. No other layoffs are planned.
The global credit crisis and related economic downturn have adversely affected almost all businesses, including law firms and their clients. For law firms this means reduced demand for legal services, as transactional activity slows and clients face increased pressure to reduce expenses. While we carefully considered all other options, we reluctantly concluded that the painful steps taken today were a necessary response to these adverse economic conditions. Today’s action is intended to better align our staffing with current work levels at the Firm and to position the Firm to be successful in this more challenging economic environment.
In this downturn affecting the entire legal industry, we are fortunate to have many advantages. Our principal clients are strong and our client base is broad and deep. Our geographic footprint covers key markets. We are not overly dependent on one or two practice areas. We have premier practice areas such as bankruptcy and restructuring, litigation and GL&S, among others, that should perform well in this economic climate.
Our greatest strength, however, is our people, their entrepreneurial energy and collaborative spirit. Working together we will manage through this difficult period. We will continue hiring to support growing practice areas and, with your help, we will continue to build a Firm that remains a preferred destination for clients, as well as the most talented lawyers, GL&S professionals and staff.
Today’s news is unwelcome and painful for all of us. It affects our friends and colleagues. Please respect their privacy and provide them with the support and understanding they deserve.
As we understand it, the severance package is three months for attorneys. No first-year associates were let go.
And so it goes. The market continues to tank, and companies continue to lay people off. As an industry, we are well beyond the “triage” phase. There is carnage everywhere.
Earlier: Prior ATL coverage of layoffs
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1 is the loneliest number
Primero!!!
I am just glad no one has dug around in my brown rudnick.
balloon knot naylor
First Prediction: Mayer Brown Next
Communicating this to everone in advance is the worst HR move I have ever seen. Any employment attorny woth his or her salt would have told BR that this is not how you do this.
Communicating this to everone in advance is the worst HR move I have ever seen. Any employment attorny worth his or her salt would have told BR that this is not how you do this.
mayer brown mayer brown mayer brown.
Stop flooding the market with resumes!
actually a very good post...... and by Elie, too!
mayer brown mayer brown mayer brown.
Mayor Brown? WHy would he lay people off, wasn't he just re-elected?
They have a Dublin office but no one seems to be working there.
I've always thought the Irish were a suspicious people.
A Boston-based firm that isn't Ropes and Gray or Goodwin Proctor? I have no idea. I've never heard of them, but my condolences to the recently unemployed attorneys who, I'm sure, did excellent work there.
On a side-note, how recession-proof is litigation work? If I focus entirely on litigation for the rest of law school, and find a decent firm, would you say that's a good area to go into? I have no interest in transactional work; I studied British novels in college.
Why are you not discussing the massive Mayer Brown Layoffs today?
Elie, you've been doing an excellent job covering all the layoff news.
13 - subtle anti-WilmerHale trolling.
"anti-WilmerHale trolling"
Wilmer Culter Pickering was a Boston firm? I had no idea!
Mayer Brown lays off dozens of lawyers and nothing......this blog sucks.
Confirmed: Mayer Brown began layoffs today. Again.
13 - Goodwin Ass. trying to pretend he doesn't know WH. No one mentions Goodwin over Wilmer...but good try.
17 - Hale and Dorr, tardwad.
"No one mentions Goodwin over Wilmer"
Well, no one in DC, where Wilmer is a hometown firm. Hale & Dorr ceased to exist, Hubsters.
13 - You are useless. Die.
poor, poor 22. Does that make you feel better about still being the solid number 3 at best?
Mayer Brown, Mayer Brown, MAYER BROWN, MAYER BROWN. How many times do we have to mention the layoffs there before you have a post about them?
13 - A British novelist who isn't Roald Dahl? Never heard of one. My condolences to those law students whose exposure to such unprestigious authors somehow produced an unfounded sense of smugness.
ya hale and dorr were subsumed in the merger. WilmerHale is technically a DC firm, at least on the national scale. But lots of H&D pride in the Boston office, that's for sure.
Brown Rudnick? Who are they? Terrible logo. Must be a TTT firm.
Just chiming in again to confirm that I have no knowledge of layoffs with any firm or really any other useful information, except inside tips on NBA players that will outperform their average draft position in fantasy leagues this season.
Signed,
Oblivious 2L who can't focus on studying for exams
I thought Bryan Cave absorbed Goodwin Procto.
Nice post Elie!
I was recently assured by 2 Jones Day partners (NYC) that we are relitavely cool, with no imminent layoffs.
Sweet. Hope they weren't lying!
Never before have i been sort of HAPPY about working weekends. Sort-of. Kind-of. That came out wrong....
22 here--
Nah, I'm not in some third tier legal market like Boston. Just hate the fallacy of acquired firms still being hometown. WilmerHale ain't a Boston firm anymore than Skadden or McDermott or Proskauer are. You've got GP, RG, Bingham, Mintz, Choate Hall, Goulston and assorted mish-mash.
"Choate" is the worst name for anything, ever. Sounds like a.....substance. Or a bodily function.
"lots of H&D pride in the Boston office"
Lots of Republic of Texas pride in Houston, too, but that doesn't get Texas a seat at the UN or it's own olympic team. H&D'rs should just accept they sold they liberty for security and thus deserve neither.
Mayer Brown???
Nothing on Paul Clement going to King & Spalding. Is this a blog?
My brownrudnick is filled with skadden and now my choate itches.
Ass Cravath
Mayer Brown CLT -- I've heard at least 7 associates laid off in Charlotte.
37: Have you read this blog before? No one cares about that.
32 - I have been told in pretty direct fashion by many @ Jones Day that there will be no layoffs (other than normal attrition, etc.).
Mayer Brown - 150 lawyers firmwide.
I want to work for Jan Schlichtmann. He is recession proof and a pillar of the Boston community.
suck it, Goodwin Procto
sidley and mayer brown, coming right up!
While 42 is obviously bullshitting, there have been MASSIVE layoffs at Mayer Brown, which has fast become the new OMM and CWT.
I can confirm 6 staff layoffs at Mayer Brown - Houston. May be more to come. Rumor is that lawers are next. Will confirm as I hear.
(Why am I doing Elie's job, and will Lat pay me, please???)
which offices are these layoffs coming from?
Elie, please get on the ball and write about the rumors regarding Mayer Brown layoffs.
42 - Where on Earth did you get the 150 number?
42 - Where on Earth did you get the 150 number?
Approx 40 attorneys in Mayer's Chicago office have been let go. The layoffs were across all years but only for those in structured finance and real estate.
MayerBrown Charlotte is letting go 30% of its workforce.
42 - Where on Earth did you get the 150 number?
no mayer brown post, but rather taking a swipe at justice o'connor's age? terrible and pathetic.
150 at Mayer Brown???
"I was recently assured by 2 Jones Day partners (NYC) that we are relitavely cool, with no imminent layoffs.
Sweet. Hope they weren't lying! "
I'm sure they weren't *lying*, but why would Jones Day partners know about layoffs at your firm?
This is the height of fucking incompetence - MysTTTAL stop eating and report on the Mayer Brown layoffs.
I am currently involved with a CWT NY associate and am very pleased at where our relationship is progressing.
FUUUUUCK! Elie - where the hell are you? Mayer Brown is one of the biggest firms in the world, and we have reports coming in of massive layoffs, and you got NOTHING? What the hell do we pay you for?
Your failure to report on this is like an NYT reporter failing to report on 9/11.
This is it, Elie - this is the stuff this blog was made to cover. Get to fucking work, man!!
Interesting comments. Boston as a third tier market, the uneducated can be so amusing. Brown Rudnick is a legitimate Boston firm, unlike WH or R&G. Look up the tobacco settlement and educate yourself.
Any word on whether Vinson & Elkins is doing well?
59 - I am confident that once Elie finishes his lunch (usually takes 3.5 hrs to eat), he will update us on layoffs @ MB.
nothing on cali bar? wow. talk about nycentric.
Mayer Brown people, please get a grip. We broke the story yesterday that they were contemplating layoffs. We have sources and we are working those sources.
If something happens that we can confirm we will report on it.
If anybody has specific information that you feel I'm ignoring, please send it to me via tips@abovethelaw.com.
--Elie
"Boston as a third tier market, the uneducated can be so amusing. Brown Rudnick is a legitimate Boston firm, unlike WH or R&G. Look up the tobacco settlement and educate yourself."
Using the Tobacco Settlement as a basis for legitimizing a firm puts Boston in league with Minneapolis and MIssissippi. Guess you proved your point that Boston isn't third tier--it's wishing it could climb up to the third tier.
63: I'm in CA and waiting for the bar (29.5 hours to go) and even I don't think it's important enough to ask for a post.
Let's not act like those NY TTTools did last week, mmm-kay?
MB Houston was always a POS. Couldn't compete with the big local firms. That office will probably be gone within a year or two.
V&E is probably relatively well.
MB Houston was always a POS. Couldn't compete with the big local firms. That office will probably be gone within a year or two.
V&E is probably relatively healthy
Texas bar results were announced today. Waco Christian University of Central Texas Law Center had a passage rate of 89%!! Go Weebles!!!
"Boston as a third tier market, the uneducated can be so amusing. Brown Rudnick is a legitimate Boston firm, unlike WH or R&G. Look up the tobacco settlement and educate yourself."
Using the Tobacco Settlement as a basis for legitimizing a firm puts Boston in league with Minneapolis and MIssissippi. Guess you proved your point that Boston isn't third tier--it's wishing it could climb up to the third tier.
It is pretty funny to watch the narcissists on here act like they have never heard of another large firm. Here's a tip: it doesn't make you look elite, it makes you sound stupid. As a corporate lawyer at an AMLAW 10 firm, I sit across the table from many lawyers in the top 200. Surprisingly, at least to you idiots, most of them are pretty good lawyers.
amlaw 10? vault or it didn't happen, 71
I work at an AMVAULT 34 firm and am proud to announce that I work at an AMVAULT 34 firm.
MANbearPIG
"an AMLAW 10 firm"
What, this is supposed to make your opinion valuable? Stuff it, pinhead.
Elie, it continues to amaze me how insecure you are. This is compounded by your evident lack of writing ability and professionalism. Let's think about what Lat would have done in the face of multiple comments demanding coverage of the possible (*read definitely happening*) Mayer Brown layoffs. He would have a) ignored them and continued to do his job; or b) moved yesterday's post hinting about possible layoffs to today, and posted an update saying that ATL was still looking for info, etc. Don't think you would have seen him make a whiny response post in the comments section.
This was one of my favorite websites. You are most certainly ruining it. Please quit.
Elie, it continues to amaze me how insecure you are. This is compounded by your evident lack of writing ability and professionalism. Let's think about what Lat would have done in the face of multiple comments demanding coverage of the possible (*read definitely happening*) Mayer Brown layoffs. He would have a) ignored them and continued to do his job; or b) moved yesterday's post hinting about possible layoffs to today, and posted an update saying that ATL was still looking for info, etc. Don't think you would have seen him make a whiny response post in the comments section.
This was one of my favorite websites. You are most certainly ruining it. Please quit.
The mgmt at Brown Rudnick is so inept it's scary. The firm prides itself on being "entrepreneurial" yet management can't even come up with a more creative approach than mass layoffs. Is this the kind of creative problem solving that clients want to pay $500/hr for? We think not. It is shocking any serious clients even use BR given that they have nothing to offer - they are as inefficient as the other big firms but don't have the strengths that the major firms offer such as expertise and experience.
The mgmt at Brown Rudnick is so inept it's scary. The firm prides itself on being "entrepreneurial" yet management can't even come up with a more creative approach than mass layoffs. Is this the kind of creative problem solving that clients want to pay $500/hr for? We think not. It is shocking any serious clients even use BR given that they have nothing to offer - they are as inefficient as the other big firms but don't have the strengths that the major firms offer such as expertise and experience.
The mgmt at Brown Rudnick is so inept it's scary. The firm prides itself on being "entrepreneurial" yet management can't even come up with a more creative approach than mass layoffs. Is this the kind of creative problem solving that clients want to pay $500/hr for? We think not. It is shocking any serious clients even use BR given that they have nothing to offer - they are as inefficient as the other big firms but don't have the strengths that the major firms offer such as expertise and experience.
150 at Mayer Brown???
The mgmt at Brown Rudnick is so inept it's scary. The firm prides itself on being "entrepreneurial" yet management can't even come up with a more creative approach than mass layoffs. Is this the kind of creative problem solving that clients want to pay $500/hr for? We think not. It is shocking any serious clients even use BR given that they have nothing to offer - they are as inefficient as the other big firms but don't have the strengths that the major firms offer such as expertise and experience.
FINAL WORD. 33 nation-wide cuts at Mayer Brown. Expectations that this is ultimate cut -- not a rolling layoff process. Cuts concentrated in New York.
I can confirm #82 -- that's the message I was officially given as well.
Brown Rudnick management is inept? How do you know this? Do you work there? Did they lay you off? Why would you bash a firm in this manner?
How is the mgmt at Brown Rudnick? Are they inept? If so, how much?
amlaw 10? come on now
75 is an ass.
Brown Rudnick mgmt is so inept ...
HOW INEPT ARE THEY?
They are so inept that when a client asked if they could win the case, they said ______________.
FRIED FRANK layoffs in DC today!!!
hmmm...I really thought I would get a callback from this firm....never got it....went to a V5 for the summer instead....I am feeling a sick glee from seeing this, and daydreaming about meeting up again with my douche of an interviewer...
"went to a V5 for the summer instead"
Uh, maybe they knew you weren't going to come and wanted to keep their yield up? Self-important douchebag.
You want to hear INEPT? The Brown Rudnick partners went on a retreat - 2 weeks ago - to Miami, at the cost of $500K. Each partner got his/her own room at the Ritz and got to pick such fun activities as swimming with dolphins. 2 weeks later, they lay off some of their own partners (good partners too), lay off associates based on salary and get rid of loyal staffers who've been there for years (in addition to how many people suddenly "retired" the last few weeks). They could've saved some retreat costs and floated people through the holidays. They're not actually inept, they just really don't care.
You want to hear INEPT? The Brown Rudnick partners went on a retreat - 2 weeks ago - to Miami, at the cost of $500K. Each partner got his/her own room at the Ritz and got to pick such fun activities as swimming with dolphins. 2 weeks later, they lay off some of their own partners (good partners too), lay off associates based on salary and get rid of loyal staffers who've been there for years (in addition to how many people suddenly "retired" the last few weeks). They could've saved some retreat costs and floated people through the holidays. They're not actually inept, they just really don't care.
People, people. Stop acting so surprised and offended. Lawfirm partneship self-selects for greedy, heartless, socially-inept arseholes. No one but a lawfirm partner would be willing to put up with the regular selling-out of one's moral values combined with mindless drudgery that is law firm practice. Once you understand the kind of person that is willing to stick around a law firm long enough to make partner, then stories like these come as no surprise.
Brown Rudnick is a sinking ship.
92, Wow, if what you are saying about the partners' retreat is true, there is no excuse for what Brown Rudnick has done. $500K should be enough to spare all staffers involved. This can turn into a good newspaper article and should ruin their reputation with clients and recruiters for years.
I'm pretty sure 1st years were included in the layoffs . . . .
92, Wow, if what you are saying about the partners' retreat is true, there is no excuse for what Brown Rudnick has done. $500K should be enough to spare all staffers involved. This can turn into a good newspaper article and should ruin their reputation with clients and recruiters for years.
98, it's true
99, Interesting. The partners, of course, can do with their money as they wish, but potential clients and recruiters have the right to know.
Lat, can we ask for Brown Rudnick's comments re partner's retreat? Just don't settle for a bogus response ("We were doing great 2 weeks ago and all of a sudden...").
As said before, great newspaper story!
"The Firm remains strong." WTF! WTF! Only a bunch of arrogant lawyers would call themselves "strong" during a reduction in force.
Raise your hand if you would agree to lower salaries in order to avoid layoffs. Uh huh. I didn't think so.
97, no 1st years were laid off.
100, the partners retreat did indeed take place a few weeks ago. Even worse, at the last associate meeting management got up and made a big speech about how great the firm was doing despite the hard economic times and assured us that everything was fine. I'm not sure what makes me more mad, that we were told that everything was fine or that so many people lost their jobs.
103, you are obviously a junior associate at Brown Rudnick if you took any reassurance from that speech from management at the time. You're at Brown Rudnick: get used to being lied to.
103, you are obviously a junior associate at Brown Rudnick if you took any reassurance from that speech from management at the time. You're at Brown Rudnick: get used to being lied to.
104, this is not the firm I thought I was coming to. I probably should have taken another offer somewhere else. I understand the economy, but I don't understand managment lying to us. If times are bad tell us and let people prepare for it. Some of the people let go have families and children on the way. They could have at least waited until after the holidays.
All true about BR: they gave a hyped-up speech about how great the firm was doing just a couple of weeks ago, they took the partners out on a lavish $500k retreat, they gave good-to-great reviews, they constantly reassured folks that things were fine, that they were more than prepared to deal with the economic downturn and had planned accordingly... then... 2 weeks later, they let people go with a canned little speech. Professional? Fair? I think not.
All true about BR: they gave a hyped-up speech about how great the firm was doing just a couple of weeks ago, they took the partners out on a lavish $500k retreat, they gave good-to-great reviews, they constantly reassured folks that things were fine, that they were more than prepared to deal with the economic downturn and had planned accordingly... then... 2 weeks later, they let people go with a canned little speech. Professional? Fair? I think not.
All true about BR: they gave a hyped-up speech about how great the firm was doing just a couple of weeks ago, they took the partners out on a lavish $500k retreat, they gave good-to-great reviews, they constantly reassured folks that things were fine, that they were more than prepared to deal with the economic downturn and had planned accordingly... then... 2 weeks later, they let people go with a canned little speech. Professional? Fair? I think not.
92 forgot to mention the widespread rumors about strip clubs on the retreat and certain NY partners renting bentleys. They had to have known the firm wasn't doing well at that point. They reduced bonuses and rolled back pay in the past to avoid lay-offs, but that was under better managment. They're desperate to appear like high rollers, top tier firm, and they're just not.
just thought I'd note that, as a NYC litigation boutique partner, I got a call from a recruiter looking to see whether I'd be interested in joining Brown Rudnick (I was surprised she identified the firm). Apparently, they are looking for people with $500K in portables.
Everthing said here about BR is true. Wednesday was nothing more than a bloodbath. Everyone sitting around waiting for that phone call. People crying and hugging each other. What they did was dispicable. A lot of loyal hard working people lost jobs because of incompetent management and a managing partner who is running the firm into the ground. They care about no one. They knew they were going to do this well in advance of the retreat. To those of you left in the aftermath .....save yourselves! The ship is sinking -- and fast.
For those who care about staff, the seven legal secretaries laid off were all 10+ years at BR.
I heard that at the 4:30 staff meeting where they named the staff member who were laid off, the man in charge said that they "considered" canceling the retreat but then they changed their minds because the attorneys "needed it" so that they could "come together". He said that they needed it and that it was paid for well in advanced, but I also heard that when they had a meeting a couple of months ago about cutting costs one of the directors mentioned canceling the retreat and now that director is without a job.
Do we know whether the website has been updated yet to reflect the departures?
I worked at BRFG many years ago. The news of the layoffs was sad enough to hear, but the reports of this partner boondoggle are just pathetic.
If the managing partner is the guy who it was the last time I looked at the firm's web site, I am really disappointed in him.
more news about this TTT firm:
http://www.legalweek.com/Articles/1185973/Brown+Rudnick+cuts+see+City+associates+laid+off.html
the partner/associate leverage in London is amusing
All the "rumors" about the partner retreat stated above are true, except that there were no bentleys rented (it was only a chrysler sebring).
The New York office of Brown Rudnick has a reputation for being a revolving door. Amazingly, there are no associates that have been with the firm for more than 2 years. People get hired liberally and then let go silently constantly. Not a good firm at all for laterals. One of the worst firms out there for laterals from what I hear.
The firm is a revolving door? I never heard that.
All firm's have been laying off...drastically. Look at White & Case, Latham, Cadwalader...all firms are reducing. I understand that management doesn't alway go about doing things the right way, however, I don't think BR or Mayer Brown or any other firm is doing things differently in this economy. It is better to know that layoffs are coming then to just be hit with the hammer when it happens. I heard good things about BR and how well they treat their employees. All firms have let go of loyal employees who have given many years of service to the firm...and they keep others with less seniority. Legal is usually done by class. Non-legal is done differently. It is sad. Most firms don't really care about anything or anyone other than the bottom line. $$$$$$$$.
Take a look at Alan & Overy. Good firm...a lot of lay offs. Top to bottom incuding partners and management. They were hit very hard. 2nd only to Latham. White & Case may be in the lead now.
We are all unsafe.
The firm is a revolving door? I never heard that.
All firm's have been laying off...drastically. Look at White & Case, Latham, Cadwalader...all firms are reducing. I understand that management doesn't alway go about doing things the right way, however, I don't think BR or Mayer Brown or any other firm is doing things differently in this economy. It is better to know that layoffs are coming then to just be hit with the hammer when it happens. I heard good things about BR and how well they treat their employees. All firms have let go of loyal employees who have given many years of service to the firm...and they keep others with less seniority. Legal is usually done by class. Non-legal is done differently. It is sad. Most firms don't really care about anything or anyone other than the bottom line. $$$$$$$$.
Take a look at Alan & Overy. Good firm...a lot of lay offs. Top to bottom incuding partners and management. They were hit very hard. 2nd only to Latham. White & Case may be in the lead now.
We are all unsafe.
I have heard that to lateral into BR is career suicide.